tv Your World With Neil Cavuto FOX News October 2, 2012 4:00pm-5:00pm EDT
fine and animal control officials say they are trying now to track down the owner. >> i am trace gallagher. that is it for "studio b" today. the dow is down a bit be the man who will take care of that is next with neil cavuto right now in "your world." >>neil: we owe. let's go. tell us he we will pay. welcome, everyone, i am neil cavuto. i will make a point here. ahead of the big debate the winner will be the guy who makes the best case if getting us out the debt it is true. there is nothing safe about the $16 trillion we owe. it cuts to the core of what as a country can do. if you are the guy who is president or the guy who wants to be president, you owe us a plan. a strategy for digging out by
first explaining how choking this debt is. how it strangles our growth and removes our spending options. how it makes a mockery of investing since we have no money for investing. how it makes us a joke to the world and increasingly a ricky bet to investors. how it is a bipartisan mess. you, candidate for president, have a bipartisan solution. i'm telling you, the candidate would acknowledges the debt el fan in the room will win the night. first, by recognizing the elephant in the room and second by risking wrap of the pundits because he acknowledged the elephant in the room the same group that says there are no easy answers to fix the debt so don't get to the fixes. i say, it is even more risky if they do not. it is a huge disservice to all of us to they do not try. time is awasting. our very days as a great nation are dwindling. take it from the -- nerd i am
obsessed about what going on. our visa bill is growing and growing. they will not put it in human terms: $48,000, each american's share of the federal debt according to the nonpartisan group state budget solution. here is another number: $62,000, each american share when you throw in state government debts as well. now my final number: $50,000 is the median household income. so, we owe $12,000 more than we make. that means as a nation what we owe now exceeds what we have. that also means even if you confiscate all that we make every penny of its you would not come close to covering what we spend, any of it. that is the issue the guys
should be hammering tomorrow night, how vulnerable we are. the guy would lays it out would not just be reframing the debate but setting off a firestorm. but one that need not concern him or us. as the fine of the mind in both political parties have told me, and, yes, there are still quite a few, to quote a certain vice presidential candidate, we can do this. listen to two guys on my fox business network show, which if you don't get you should demand, last night, retired democratic senator sam nunn and former republican senator bob bennett appears jointly on fox business network. each offering relatively modest proposals to fix this mess. listen closely. >> we particularly have to discuss, frankly, with the american people, that the entitlement programs simply cannot maintain the same trajection. we will not cut social security or cut people's medicare but we
have to bend the coastline down. >> there are trillions of dollars waiting on the sidelines for some sense of certainty, to come into the economy and invest ment. >>neil: if though get their act together. >>guest: otherwise the money will not come in. >>neil: a coiled plan that waits if someone office a plan. we do not have to solve the debt mess but just she the world we are serious about tackles the mess. ask bill clinton. sometimes you just need a do-able plan that is enough to get the markets believing and the rating agencies to hold off downgrading and have americans feeling more confident. you did not have to wave a wand and tell us how you will make all the red ink disappear overnight. you just have to state a plan on starting the process.
tomorrow night be the former reagan economic adviser who remembers how bill clinton and how ronald reagan did that. you do not have to change things immediately, you just have to give a plan that makes people think and hope and pray you have started the process, right? >>guest: that is correct. you need to get growth. you have to get growth. you cannot balance the budget on the backs of the unemployed and the poor. that is where a flat tax comes in. it allows attraction of the capital abroad. sam nunn was correct, you have to cut government spending. that has to happen, especially entitlements where you pay people not to work. there are other ways of bringing the debt down. cool ones. for example, how about a federal state, local, tax amnesty program? there are a lot of people in the underground economy that would be brought above ground with amnesty program. i estimate a federal, state and local tax amnesty program would
raise about $800 billion in 90 days. you can also sell some assets off. camped person -- camp pendleton is 500 square miles in california. why not sell it? >>neil: my point, when you say it is too big to handle, you are missing the point, you cannot cut $16 trillion debt but you can boom your way from it. we are losing sight and what bill clinton learned in 1993, 1994, if you present a plan that looks credible like you want to reverse the direction, sometimes that creates a boom in and of itself and inspires confidence in the market that has little confidence right now. i blame both parties, by the way. if you give them a guidepost and show you have now planted your plan, you will be off to the races. i hope and i want to see that tomorrow night. will i? >>guest: i don't know if you
will or not. i have been waiting for romney to come hitting the growth agenda and low rate flat tax-and-spending reductions and the other ways of bringing the national debt down. i have not seen it. the 4 percent tax rate came out i thought he said he was proud of paying 14 percent and everyone else should pay 14 percent. i shouldn't be the only one paying 14 percent. he did not do it that way. i hope this time he does. if he does the growth message like ronald reagan, he could win the election but it has to be truly credible and not appear as though he is apologetic. >>neil: what i learned on fox business network talking to these two retired senators, they recognize how surprisingly easy it is just to talk about a democrat in the indicate of sam nunn, slowing down the growth of entitlements and from senator
bennett, a republican, closing loop hes and credits that allow some not to pay taxes at all. ronald reagan would tell you, it is not a tax hike. however, we get so dog mattic and fixed in our positions we are piling up more to the debt because of this. >>guest: exactly. sam nunt did not mention, just talked about the trajection but if we get the broad based simpson-bowles, you will get so much fatter growth people will get jobs and be taken off we because they have good, high paying jobs and will go to the tax roles rather than being on the welfare roles. when people are moving to the tax roles rather than welfare roles you can reduce tax rates, or welfare spending and bring it back faster. >>neil: it is about inspiring confidence. ronald reagan did that, bill clinton did it. but this idea that we can't do it and certainly when pundits say further candidate should
even touch it tomorrow night, that gets to the core of the problem. >>guest: that is exactly correct. this is the issue. all the issues that we are talking about in the economy are encompassed inside the national debt argument. you can get rid of the unfunded liabilities, as well, just the way we did with social security under ronald reagan by tending the age of retirement, by reducing benefits, by subjecting half of them to the income tax. there are lots of things you can do to bring this economy back and fairly quickly in two terms you could bring it back the way reagan did. >>neil: the fact is you cannot buy your way out it. you have to boom your way out of it. thank you, art. >> in washington, dc, talk of a plan to keep the government from going off an immediate fiscal cliff because if nothing is done, tax bill per household could jump an average of $3,500.
now to washington, dc, with latest on this plan. >>guest: that is the worst case scenario which you are talking about meaning altogether the tax cuts set to expire at the end of the year do expire. lawmakers will be hard pressed to figure out a way to avoid that before the end the year with the deficit reduction plan that deals with the expiring tax cuts and the $1 trillion cuts to defense and domestic programs. a new report out today says this could be a plan developing to help lawmakers move forward on it all. "new york times" reports that colorado democratic senator bennett and tennessee republican senator alexander are representing their parties and would in part set a deficit reduction target of $4 trillion over 10 years. congressional committee would do the work taking six to 12 months figuring out how to achieve that with tax increases and cuts to federal programs. if that fails, part two would
then be an automatic deficit reduction structure in effect, likely similar to simpson-bowles. finally, lawmakers are likely under this framework, to vote to put off the tax increases and the automatic spending cuts physical some sometime in 2013. barring some action, here are examples of what would happen in 2013. if your income is $40,000 to $60,000, your taxes go up $2,000 next year. if you are in the top 20 percent with an income over $108,000 your tax bill goes up by $14,000. if you are in the top 1 percent and make over $506,000 your taxes will increase by $120,000. it seems do-able on paper, but, remember, a a lot of daylight on deficit reduction between republicans and democrats such as would gets the tax cuts and what and how federal government
should be cut. those are and will be pitched battles on capitol hill. >>neil: ahead the debate, we will just say our denver fans are out in force. they must have known i would be wearing body paint. they heard that neil cavuto is coming to town and boy do we have great debate coverage planned for them and all of you at 4:00 p.m. eastern. in florida, republican congressman west has been making news and we have former governor wilder, and former governor giuliani and former debt commission co-chair, alan simpson and sarah palin joining us, home depot founder, the democratic mayor of los angeles, as well. watch us. you can tivo bret baier. he is okay with it. the guy is a saint.
a saint. anyway, bucking china in the buckeye state. telling companies to lay off the lay off notices five weeks ahead of the election. do you notice a pattern here? we do. you report. you decide. the world needs a broader mix of energies. that's why we're supplying natural gas to generate cleaner electricity... that has around 50% fewer co2 emissions than coal. and it's also why, with our partner in brazil, shell is producing ethanol - a biofuel made from renewable sugarcane. >>a minute, mom! let's broaden the world's energy mix. let's go.
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>>neil: five weeks out. is it me or some of these things getting weird? take weird number one: the president talking about a crackdown on china in ohio. two, republicans lashing out over the white house still not ruling out tapping the strategic oil petroleum reserve. weird number three, the administration giving the okay for contractors to delay sending lay off notices which could have hit workers...days best election. coincidence? or sinister? democratic strategist no doubt says sinister and is completely
disgusted in the president and now is voting for mitt romney. well, that is a shocker. what do you make of this? >>guest: well, listen, i understand it is easy to be cynical but if you break them down, on china, the president has filed eight trade disputes against china. now, has any administration, including president obama or president bush or going further back, done as much as they could on china? maybe not. but it is an extremely difficult challenge. i imagine if the president was extremely tough on china, republicans would be out there beating him up. >>neil: you find tough talk and trade talk especially in key swing states like ohio isn't, just, coincidence? >>guest: it is as much coincidence as governor romney talked about ohio. this is interesting --. >>neil: you had this interest in three or four years as president to go after chinese where the concentration in the
last few months of trade sanctions? >>guest: why being so cynical, neil? when you look back what the president has done on trade, he has taken a more balanced approach. he has been for trade. he understands, also, the consequences and the implication of a trade conflict with china. look at the other side, manufacturing jobs in terms of democrat the of the recession have grown. when you look at governor romney's record on china, it is tough to take his words with any credibility. >>neil: all their stuff is made in chinese. >>guest: everything is made in china. >>neil: you are talking about companies that ship jobs overseas and you leave a big one out, that is glaring, right? >>guest: i am not sure i see it that way. the president, i think, takes a balanced approach when it comes
to china. the challenge here is for governor romney to paint that the president isn't standing up for the middle class in the president is out there fighting for the middle class? >>neil: what about the lay off notices. we know that sequestration and all sides agree, so it is not just the president but if the president to intervene or the white house to enter reason and accept the lay off notices going to the affected contractors, oddly enough the crucial swing states like virginia --. >>guest: that is because that is where the contractors are. >>neil: i know. i am saying, this is etched in she -- cement unless they get rid of sequestration. >>guest: i was on the hill working for a senator as a chief staff during this whole sequestration. >>neil: so you know it is coming. you have an obligation to get the word out. >>guest: correct. here is what the president is
doing and why it is the right thing to do. when you look at the facts and the potential consequences of losing to many jobs, and you --. >>neil: this many jobs or votes? >>guest: this many jobs. >>neil: all the better to warn them. >>guest: it is not just republicans or democrats. >>neil: all the better to warn them, you could be without a job. >>guest: the goal here and what the president's agenda here is to figure out how can we post this election, figure out how to prevent sequestration? >>neil: that is another leap to say don't give a warning. >>guest: you do not --. >>neil: if george bush did that you would go nuts? >>guest: if george bush was standing up to protect american jobs it would be surprising to see. >>neil: part of the answer is to give them a warning they could lose theirs? we will try to revent them but here is a warning. >>guest: the ownous on the president is to make sure the jobs take in place and to work with the congress to make sure the jobs are not lost.
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>>neil: last week it was this. tons of positive coverage for the president as polled showed him gaining a lot ground on governor romney in swing states. today, as polls show the race is tightening in those swing states, we are seeing this. everything from a presidential wedding anniversary to coverage of the candidate eye blinking. in surprise to my next guest, pat caddell. i am looking at the polls that i check each day, and, whoa, whoa,
whoa, it is close again. now, what do you make of it? >>pat: you know why. i gave a speech on it a week ago and i have been on this. the press has gone to places, the mainstream immediate why it has never gone in support of a candidate, both in terms of the coverage of libya, what we are not being told, and, also, on the polls. they have a narrative. the narrative is obama is winning big. they have producing -- been producing polls that show that. they are getting a lot of democrats and they doing polls on race, age, sex and more. these are news organizations that are supposed to be broke, cutting news staffs and they are spending thousands and thousands
on the state presidents that are very, in my opinion, flawed. what they doing, is a narrative that obama has won. at this stage, that is what matters and influences dough increases, it influences people working the campaign and it influences streeters. >>neil: here is where i remove my sinister thinking. i will say this: how can there be such a disconnect between national polls that are relatively tight and swing state polls that are not? they are tighter than a few days ago. the media is not telling you that. but how do you have that kind of a disconnect? >>guest: i have a question because request get it. i know a little bit about polling. if the swing states, those are the ones that are supposed to be in the middle teen the hard red states for the republicans to romney and the hard blue states like california and illinois on the other side, including texas
and georgia, whatever, in the south, my question is this: given the fact of the size of the democratic vote if the south and african-americans and hispanics in texas or the blue states, are these candidates -- the president would have to be in trouble in the blue states, the heart states like california, and romney would have to be winning the south by 80 percent to make these numbers come out to have a 10-point lead in the swing states. this is a problem of breaking out partial samples of national polls. there are so many problems here. >>neil: the methodology goes over my head which is easy to happen. you are brilliant but you lost me half a paragraph ago. i want to get your reaction to something gentleman biden -- joe biden said. >>guest: is deadly earnest.
this is deadly earnest. how they can justify, how they can justify, raising taxes on the middle class that has been buried the last fur years, how in lord's name can though justify? >>neil: he just said the middle class has been buried. >> i am missing this. i don't have a term but that was joe biden talking about the middle class being buried with tax increases. >>neil: buried the last four years of the administration and now they are looking at tax increases. >>guest: well, what can i say for joe? after all, just go to obamacare. this campaign has lost all sense, both parties, both campaigns have nothing but utter contempt for the american people. you have serious segments on today, we not having that discussion about what is coming in the debt in this sequestering
and what we have to do. that is not happening. we have campaigns for people to say, just basically crazy things on all sides. i think at some point the country is disgusting. i am, i don't know about you. >>neil: if you are disgusted, i'm disgusted, that is the bottom line. always a pleasures my friend, thank you very much. healthy lunches are such a hit in cafeterias uncle sam is telling americans what to serve in their kitchens. does your phone give you all day battery life ?
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and it's good! good?! they're grrreat! >>neil: when did mother knows best become government knows best? the u.s. department of agriculture thinks that school lunch program is so great it is now telling parents to serve the same stuff to kids at home. is that getting a little too close to home? all rise, judge. >>judge napolitano: you said mother knows best which is mother bloomburg is called in new york city, mother bloomburg. >>neil: i have heard "mother" but there are other words attach to that. >>judge napolitano: because his efforts it regulate private behavior. the government gets all of its powers from the consent of the governed. we have never could be scented to allow any government to tell us what to eat in our homes. for the department of agriculture to take their authority to regulate the movement of food and interstate commerce and claim that it
somehow has the authority to regulate food on our tables, that is unconstitutional. it is unfair. it is unlawful. it is against the laws of nature. it is accruing for itself power we never gave. >>neil: i will put you down as "not liking" this. >>judge napolitano: mildly. >>neil: i could make a point, a stretch of a point, to say in schools, maybe. but now you are in my home. >>judge napolitano: the government with like to get in our homes. petroleum did not go help to government unless you are ron paul to shrink it but to use the power to regulate human behavior. some believe they are regulating human behavior if the good. others just do not agree. >>neil: the good argument is we get thinner, healthy, and the health care costs go down. >>judge napolitano: that is the argument. >>judge napolitano: the same
federal government that cannot deliver the meal to our homes reliably wants to come in can tell us what to eat in our homes. >>neil: how would they police it? >>judge napolitano: probably put the burden were on the states so they will bribe the states. you want money to fix your highways and schools? regulate what people do in their homes. have the police knock on your doors at dip -- dinner tame. >>neil: would they check your grocery bill? there is no way did police this. >>guest: it is not practical. it is burden in. >>neil: but i would have said the same thing about a city banning big gulp sodas. >>judge napolitano: correct, but it did not stop them from talking about it. i predict it goes nowhere. this is beyond anything, coming into your kitchen. >>neil: there is a step to this. >>judge napolitano: it is a slippery sleep to the open jaws
of big brother on whose face this is never a smile. >>neil: just imagine policing me, do you really need 82 boxes of ring dings? >>judge napolitano: what did we have for dessert when i came over for dinner? >>neil: check out this massive line for $1.84 gas. just to drive home a political point for president obama. is he listening?
>>neil: a group of michigan says forget unemployment, look at gas prices which have doubled from $1.87 a gallon. now they are selling gas for that same price all to sell the point about what they call the president's failed energy policy. we have the michigan director of americans for prosperity, the group behind this novel campaign.
what were you doing, offering a set number people a chance to get gas at that price? >>guest: actually, it is a failing obama agenda. we use this to highlight to the public how soon, it has only been 3 1/2 years when gas was $1.84 a gallon the week president obama took office. we want president obama to stop the failed policy and implement policies that will bring the price gas back down the we had a set number, 150, and so many shows up we raised the number to 250 and over course of two hours we were able to sell gas for $1.84 in the flint, michigan, area. >>neil: when they hear that is what gas was, when the president first took office, are they surprised? >>guest: they are very surprised. people started lining up at 11:00 and we did not give gas out until 2:30. a lost them wanted their receipt to prove they paid $1.84 for gas. >>neil: do you find it interesting the gas thing has
not resonated to the degree that many in the. one of my many crackpot theories is that it has been this way it is long that it is kind of like the pathetic economic numbers which have been muddling and as long as they are not tumbling, men -- americans are grateful. we are getting used to it, we don't like it but we are used to it and it is numbing >>guest: it is numbing. if you look at deficit from $10 trillion to $112 million, and unemployment in michigan is $9.4 percent. today we are 36th in per income per capita. gas prices were $1.84. we can get this again. we have the resources to be energy independent if only president obama would stop his failed policies, adopt policies, adopt the keystone xl pipeline.
let's drill. we can be energy independent rather than sending hundreds billions of dollars to companies that do not like this. >>neil: our gas prices, do they ever justify $100 fee for a collected bag? i want you to meet the c.e.o. who is essentially asking the air public to fly commando. the rich and famous are pumping up the president again. it could have "the five," all riled up. now, an theia, -- andrea, what are you up to? >>guest: get ready to burn your bras because gloria steinhem is back, and joined by sheryl crow to try and paint republicans as extremists in a new campaign ad for president obama. it sounds like although they know they have women on their side they are not sure they can
get them to show up at the polls. >>neil: does this move the needle? you have worked and seen campaigns upclose, when big celebrities come out to support a candidate, it could be like jack nicklaus for mitt romney on the other side, does it move an average voter? >>guest: i don't think it does. average voters care about the economy, they care about whether they have a job or they can pay their premiums. oprah helps but this time things are so serious, it helps with earned media getting headlines to say, look, so and so supports the president, it doesn't really move the needle in the big picture because celebrities, you like to listen to them talk, but they are reading lines of someone else so you are making the decision yourself. it is not relatable to me or dana or kimberly, i don't think
so. we wish we had her shoe collection. >>neil: that is not all, baby. anyway, thank you, andrea, look forward to it on "the five" minutes from now. they saw lay offs and now taxpayers are just stuck. gecko (clearing throat) thank you, mr. speaker, uh, members of congress. in celebration of over 75 years of our government employees insurance company, or geico...as most of you know it. ...i propose savings for everyone!
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problem, legally, it is a big problem, right? can they do that? >>guest: i don't know. it is obscene at the very base. the president has not done his work on sequestration. neither has congress. the budget cuts go into affect january 2. the law says if you are going, if you have a company of over 100 employees and you predict massive layoffs, you have to give 60 days' notice. that comes right before the election. what the president has done is they wrote a letter they have written to against contractors including lockheed martins saying, look, you don't have to comply with the law because if you do not only will we, the federal government, pick up your employee compensation costs but we will pay your legal bills regardless if you win or not. they are saying we will take taxpayers dollars and pay your legal bills the no one asked the taxpayer. if the president did his work in
the first place and led we would not have this issue of sequestration coming up in january. we do not have help and now this on soon thing that taxpayers have the pay the legal bills. this is the full employment act for lawyers. as fannie mae, the taxpayers paid almost $100 million to represent three or four people, association get ready. it is nothing but obscene. another thing, lockheed martin is a big employer in the swing state of virginia. they have taken the bait. they are not going to send the notices. that keeps the president looking pretty in virginia because not all the people get lay off notices before the election. >>neil: it reminds me, i had a cable experience with this. the box for the cable company, its goes out on me. obviously i need a new box. the cable company comes to replace the box and charges me for the guy replacing the box.
i am saying to myself, it is their box that quit working and they are sending me a bill for that. i didn't pay it and my point was and is, how do we as taxpayers respond? i have no cable at my house, by the way. my point is, how do we as taxpayers respond to something like this? >>guest: first, if you don't have cable you can not want fox business network. that is my first shock. >>neil: you don't want to know how i got around this. that is for me to know. >>guest: look, this is so obscene, so obscenely political, the idea that the president don't want the massive lay off notices to go out right before the election, so without consultation, he pledges our money to pay their legal bills if the employees are mad. >>neil: but this is very transparent. you do not have to be a big legal eagle to know this is weird. is what they are doing in
stating this, in itself, legal? >>guest: it is immoral. i give you that one. >>neil: you lawyers don't care about that. is it illegal? >>guest: in the terrible times of waste and fraud, the idea that the president thinks that he can just dig into the taxpayers and pledge money, take taxpayers money and say we will pay all the legal bills, all the compensation, don't send out the noticed which you are oblige by law to do, they will try to get around it by saying there is in certainty that sequestration will actually occur because they are hoping during the lame duck session they can somehowry solve this. but the requirement under the warren act is reasonably foreseeable, and i add that senator graham is quite upset about this because this is a 60 day notice under the warren act. in 2007, according to senator graham, then senator obama wanted it to be 90 days. so now the shoe is on the other
foot. he doesn't even like 60 days now. >>neil: thank you very much, greta. this just in, fox business network going all out. we told you we would be all over the election. wait until you hear what we are planning for the debates. >> we want to make sure the >> we want to make sure the teams are on the same page. [ male announcer ] how do you measure happiness? by the armful? by the barrelful? the carful? how about...by the bowlful? campbell's soups give you nutrition, energy, and can help you keep a healthy weight. campbell's. it's amazing what soup can do.
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shredder, a $29 value free. [♪...] call or go online now. [♪...] ♪ >> neil: well, back at it, because well, we love it. fox news network means it. i mean. it you know we're all over the political world right here on your world on fox news. wait until you hear what we're playing on fox business. set to cover the big debate in denver. i'm leaving after the show. as we has every caucus, primary and convention and every twist and every turn. a lot of you put me in your calendar. i am tickled to death you are coming to my hometown. this 90-year-old grandfather finds you brilliant and sexy.
but relax, i'm long past acting on my fantasy. ed on aol, the coverage is going from 8:00 p.m. to midnight, can that be right? yes, ed, it's right. peggy via yahoo -- >> neil: no, it's a thyroid thing and the camera does add 50 pounds. new york city -- thank you, elaine. my i suggest "60 minutes" reyou runs on the other financial challenge for your viewing pleasure. paula in montana -- >> neil: i think it was eight hours that long night. i love and the staff loved every minute of it.
especially when we found out we beat a financial channel flail twice as many homes. preview of what would become coming attraction of the convention this year. we're on ra roll. fbn serves a roll. if we build it, they will come. if we work hard, they can hardly ignore us. we didn't. you didn't. and fox business, we're grateful. tom via aol -- >> neil: i did do a jerry
lewis bit. but thank you for watching. folks like tom, and his brilliant wife, know that fox business means business and anything having to do with your money, your taxes. other business networks talk a good game, but we mean it when we say it. this election, we're not electing bankers hours to cover it. we're all over it. in atlanta -- >> neil: that's not necessary. >> neil: kiley, three words, i told ladies this in high school. "built for comfort." it didn't get me anywhere but
i have two more. starting tomorrow. 8:00 p.m. fox business. network that bret baier himself is on. it's gotten the point where my buddy bret now dvr himself. it's true. see for yourself. you are always front and center at fox business. we're not just about earnings but earning your respect. respect what we're earning and paying. no debate. th.the commitment will continue tomorrow. see you in denver with a list of names. the movers and the shakers in the financial world. added extra you get. the foreign markets responding to the debates. it's an interesting read on how they read us. you can only get that on fox business. because it's pro priortary. i don't share it with anyone. all the markets are talking just to me. okay. but by and large, they are. we mean it when we say it.